By Gloria Ikibah
Chairman of the Federal Inland Revenue Service (FIRS), Zack Adedeji, has explained that the four new tax reform bills are meant to combine all scattered tax laws into one, making it easier to manage.
Adedeji who stated this at a meeting with the House of Representatives Committee on Finance, said the bills presented to the National Assembly were not about raising or introducing new taxes, this is even as he also clarified that the reforms will not merge any government agencies or cause job losses.
He said, “We want to harmonize all the tax laws because we have different tax laws scattered in various establishment laws. This leads to multiple taxes because each agency enforces its own tax law.”
The FIRS boss further noted that no agency is more important than another, and each must carry out its duties. This, he said was not good for the economy, which is why President Tinubu wants to combine all the tax laws into one system.
He added, “As we stand today, there is no law regulating or monitoring cryptocurrency. We can’t isolate ourselves from global developments, so one of the goals is to organize the fiscal framework efficiently.”
Adedeji also highlighted that the reform will help government spending. “For example, before the Treasury Single Account (TSA), the government could have money in one bank but still borrow from another. TSA now gives a clear picture of where government funds are”.
He further stressed the need for transparency in revenue collection, and assured that the government is not looking to tax poverty or inflation.
“We want the tax laws to be simple so that people can comply easily.
“The reforms will also update old tax laws to fit current realities. We’re still using a tax integrity test from 1939 when there was no internet or online shopping. These bills aim to align Nigeria with international standards and attract investment.”
“We will never increase the rate or number of taxes. The president believes in harmonizing the taxes we have, with fewer than 20 types of taxes”, he added.
He stated that the proposed Nigeria Tax Act will put all tax laws in one book, reducing the number of taxes, citing the example of the Education Tax Act, which collects a percentage for various funds, and said compliance has been an issue and the new act will make this simpler.
“The Nigeria Tax Administration Act will harmonize the administration of taxes, ensuring a uniform process so people don’t have to navigate different systems”, he noted.
Adedeji also discussed renaming the FIRS to Nigeria Revenue Service to reflect its role in collecting taxes for both the federal and state governments, as well as from international companies like Google and Jumia.
“The final reform is the establishment of a Joint Revenue Board to create a legal framework for resolving conflicts between states and local governments over revenue collection.
“These tax reforms will stimulate the economy and lay a foundation for the type of economy the president envisions”, he concluded.
Chairman of the Committee, James Faleke, earlier in his remarked that the meeting was to give members firsthand information on the necessity of the bills ahead of their second reading.